The Bitcoin mining industry is often misunderstood, especially by retail investors.
Roundtable anchor, Rob Nelson, discussed this issue with Rob Chang, CEO of Gryphon Digital Mining , and George Tung, host of CryptosRUs. They explored how to better communicate the complexities of mining to a broader audience.
Chang pointed out that many investors focus on simple metrics like size or just holding Bitcoin. "How do we migrate the knowledge base among retail investors to more sophisticated things?" he asked, highlighting the need for a deeper understanding of mining fundamentals.
Tung noted that people often ask him whether to invest in Bitcoin or in mining companies. "By supporting the miners, you're really supporting Bitcoin," he explained, emphasizing the key role miners play in maintaining the network.
So far this year, it's been a tough go for many miners as competition heats up. Marathon Digital is off about 35% despite Bitcoin's 30% rise. Bitfarms is off by about the same margin.
Tung mentioned that mining companies sometimes outperform Bitcoin in the short term. "I've seen other companies that are publicly traded where their stock movement actually outperformed Bitcoin," he noted, pointing out the investment potential in miners. He reiterated that without miners, "the network would not exist," emphasizing their essential role in supporting Bitcoin’s security and decentralization.
Rob Nelson stressed the need to shift the focus from Bitcoin itself to the infrastructure behind it. "It's not just about holding Bitcoin, but understanding the infrastructure that powers it," he said, calling for better education around mining companies.